Yukon Zinc Corporation

Yukon Zinc Corporation

December 05, 2007 17:40 ET

Yukon Zinc Withdraws Current Prospectus Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 5, 2007) - Yukon Zinc Corporation (TSX VENTURE:YZC) ("the Company") announces that it has withdrawn the previously-announced prospectus offering of securities, due to current unfavourable equity market conditions. Dr. Harlan Meade states: "We are disappointed on behalf of our stakeholders to take this action, however it is not possible at this time to close the public financing on favourable terms. Although no proposals are currently under consideration, the Company will now focus on alternatives for financing the Wolverine Project and will consider all forms of transactions that recognize the inherent value of Wolverine and the other assets of the Company for shareholders." In this regard it intends to engage advisors to assist in this process.

Barclays Capital PLC has informed the Company that the Barclays Capital US$140 million underwriting commitment will remain in place while the Company evaluates various financing options, subject to an expiration date of March 31, 2008. The Company welcomes the continued support of Barclays as it provides a key part of the project financing and allows management to focus on the equity portion.

The Company will reduce activities at the Wolverine Project site over the next few months. Management and the Board continue to believe that the Wolverine project will be financed and built; however, it is important to preserve shareholder value in any new financing plan developed. The Board and management are committed to evaluate the alternatives and to define a plan that sees the renewal of development activities at the earliest possible date.

Yukon Zinc Corporation is focused on the development of the Wolverine zinc silver deposit, as the Yukon's next significant zinc-silver mine and the exploration of the Finlayson District as Canada's newest Volcanogenic Massive Sulphide District.

Except for the statements of historical fact contained herein, the information presented in this News Release constitutes "forward-looking statements" as such term is used in Canadian securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements, including but not limited to, those with respect to the Offering, the Barclays Facility and the ability of the Company to proceed with construction at the Wolverine Project and the other factors and events described in this News Release, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the estimation or realization of Mineral Resources and Mineral Reserves (as such terms are defined by applicable Canadian securities regulators); variations in the underlying assumptions associated with conclusions of economic evaluations, including the timing and amount of estimated future production, costs of production, capital expenditures, the failure of plant, equipment or processes to operate as anticipated and possible variations in ore grade or recovery rates; availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares; risks of the mining industry, including without limitation, those associated with the environment; and delays in obtaining governmental approvals, permits or financing. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release.

12G: 82-4603

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information

  • Yukon Zinc Corporation
    Dr. Harlan Meade
    President and CEO
    (604) 682-5474 or Toll Free: 1-877-682-5474
    Yukon Zinc Corporation
    Shae Dalphond
    Manager, Investor Communications
    (604) 682-5474 or Toll Free: 1-877-682-5474
    (604) 682-5404 (FAX)
    Email: info@yukonzinc.com
    Website: www.yukonzinc.com